Worries Over Recovery Start To Grow As Sentiment Dive Follows Retail Sag Factory Rebound Moderates.(A)

Byline: JED GRAHAM

Consumer sentiment pulled back sharply in early June, falling to its lowest level since February, a University of Michigan survey showed Friday.

The university's consumer sentiment index fell to 90.8 from 96.9, surprising economists, who had forecast only a slight dip to 96.6.

The drop follows a modest decline in the IBD/TIPP Economic Optimism Index. It was led south by a sharp fall in one component -- the six-month economic outlook.

The waning sentiment raised concern the unexpectedly large 0.9% drop in May retail sales reported Thursday wasn't just the result of bad weather.

The prospect of a more cautious …